Finding stocks that can deliver double-digit free cash flow growth year after year is rare. Free cash flow represents the actual cash a business produces after covering all expenses and investments, which means it’s the money the business can use to expand operations, pay dividends, buy back stock, or reduce debt. Over time, sustained growth in this figure often drives strong shareholder returns, because it fuels both reinvestment and direct cash distributions.
In this list, we’ve identified eight companies that are expected to grow free cash flow at 10%+ annually in the future and trade at valuations that suggest the market hasn’t fully priced in that growth.
These are businesses with the financial flexibility to navigate economic cycles, invest in future growth, and return meaningful capital to shareholders, all while offering an entry point that could reward patient investors for years to come.
| Company Name | P/E Ratio | Analyst Upside |
| Salesforce (CRM) | 20 | 51% |
| Adobe (ADBE) | 15 | 42% |
| Sonoco (SON) | 7 | 27% |
| UnitedHealth Group (UNH) | 16 | 25% |
| Merck & Co. (MRK) | 9 | 25% |
| General Motors (GM) | 6 | 5% |
| NVIDIA (NVDA) | 37 | -1% |
| Broadcom (AVGO) | 43 | -6% |
Below are 3 of the most interesting stocks on this list:
Salesforce (CRM)
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Salesforce (CRM) is the global leader in cloud-based customer relationship management software, serving over 150,000 companies worldwide. Its platform spans sales, service, marketing, and analytics, making it deeply embedded in client operations.
The company’s free cash flow has grown significantly, reaching $12.4 billion in its most recent fiscal year. Salesforce recently initiated a dividend, returning value to shareholders in addition to its ongoing share repurchases. It has been using its robust free cash flow to fund these shareholder returns and to invest in AI-driven product upgrades, of which the current dividend yield is around 0.7%.
The company has a large and growing number of enterprise clients, including almost half of the Fortune 100 as AI and Data Cloud customers. With its dominant market position, recurring subscription revenues, and steady double-digit operating margins, Salesforce offers investors a long-term growth story anchored by predictable cash flow.
Adobe (ADBE)
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Adobe (ADBE) dominates the creative software market with flagship products like Photoshop, Illustrator, and Premiere Pro, while also driving growth in digital marketing and document services. Its subscription-based model delivers consistent, high-margin revenue.
Adobe consistently generates strong cash flow, with annual free cash flow of over $8 billion in its most recent fiscal year and returns capital to shareholders primarily through aggressive share buybacks, with its board approving a new $25 billion repurchase program in March 2024. The company doesn’t pay a dividend, reinvesting in innovation and acquisitions to strengthen its ecosystem.
With strong brand loyalty, industry-standard products, and expanding AI tools like Firefly, Adobe is well-positioned to sustain growth and widen its competitive moat.
Sonoco (SON)
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Sonoco (SON) is a global packaging leader, producing consumer packaging, industrial products, and protective solutions across more than 300 locations. It serves a wide range of industries, from food and beverage to healthcare and e-commerce.
Sonoco has increased its dividend for 42 consecutive years and has paid dividends for 100 consecutive years, currently yielding about 4.7%. Sonoco maintains a conservative payout ratio of approximately 37%, which shows a strong ability to fund its dividend and reinvest in the business.
The company’s diversified product portfolio, strong customer relationships, and long history of disciplined capital management make Sonoco a dependable choice for investors seeking stable income.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
